Thursday, August 31st, 2017

Coca-Cola, Pepsi – A downfall in the division of soft aerated drinks!



“Cola defined CSDs for many years. But this will not be the case in the future,” said an industry official.

5 plants across Uttar Pradesh, Rajasthan, and Andhra Pradesh within a year were ceased due to stagnating demand rates.

Plants providing aerated sugary drinks suddenly are facing a mammoth downfall in production division underlining a distinct shift in consumers preference, ultimately the phase of growth rate had substantially stumbled the market scenarios for COLA & PEPSICO.

Previously, off seasons were witnessing the sluiced in growth rate, but with sales demographic displaying barring May & June ratios of sale which is 40%, half of the total, Carbonated Soft Drinks(CSD) are diving down.

Nonsugary healthier beverages & proliferation of other brands are surmounting buyer’s preferences. Moreover, 40% of levied GST taxes have dented the commercial advantages of both the global brands.



 Niteen Pradhan, VP of supply chains & operation of PEPSICO said that “utilization still is satisfactory” with “no significant change in supply chains” athwart company’s plant.

“We have the right capacity to service our growth plans for the portfolio going forward. Over the last few years, our beverage portfolio has expanded into many newer categories across carbonated beverages-within both colas and flavors, juice and juice drinks, sports and active hydration, in line with evolving consumer choices,” Pradhan notified.

According to him various other products like Pepsi black, Tropicana – essentials and 7UP Revive have been delicately & deliberately been a source of support for optimisation growth athwart the operations. Very specifically he mentioned that not a single unit of the plant came to cease during previous sale falling ratios.

“Colas defined CSDs for many years. But this will not be the case in the future. The relevance for colas is fast moving with food outside the home at restaurants,” another industry spokesperson mentioned.

Coca-Cola is a proud owner of 57 plants and franchise bottlers. On other ends, PepsiCo deals with 45 plants of their beverages including 9 companies owned facilities.

A Coca Cola spokesperson said at the gilt edge we are drawing the company’s facilities and with a flexible approach, we are always ready to uphold business growth objectives. “We have products in our innovation pipeline that will require the full capacity of our manufacturing plants,” he said.

Euro monitor of research and analytics gave a brief statistics of bottled water & CSD beverages saying by 2021, sales of bottled water will increase outrunning the 7% growth of CSD. In terms of assessment also financial worth of bottled water will have 17% more hype as compared to 4% of CDSs.

“Unavailability of clean drinking water, especially away from home, will continue to be a major growth driver during the forecast period and will encourage the growth in bottled water sales,” it said.



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